Animal Products and Income Elasticity of Demand
The animal products have positive income elasticity of demand. This implies that as the consumers’ income rises, more their consumption pattern will change and more they will demand the animal products such as meat, eggs and milk. This is one reason that despite reduced importance of livestock as draught animals, they still hold a prominent and growing place in farm economy. As the income of Indian middle class is expected to remain upbeat; the demand for animal products is also expected to rise. This demand is to be mainly fulfilled by domestic supply and that’s why there is a need to sustain the current production and growth.